Zitadel raises $9 million to accelerate product development

Zitadel announced its $9 million Series A funding round led by Nexus Venture Partners with participation from Floodgate.

Both firms represent the world’s best experts in open source, developer tools, and identity infrastructure. Zitadel’s developer-first approach and a strong focus on data security and ownership has fueled its growth to more than 150 customers across North America and Europe. This investment will further Zitadel’s vision to lead the identity infrastructure and authentication market.

Abhishek Sharma, Managing Director at Nexus Venture Partners, said, “We have been impressed with the Zitadel team’s vision and are excited to strengthen our partnership. With a vision to bring a cloud-native identity platform that puts developer experience and data security at its core, Zitadel is on the path to becoming the de facto standard for identity and authentication management. The identity and authentication space is ripe for disruption and Zitadel is well-positioned to win.”

“Zitadel is addressing a critical need in the market for cloud-native identity infrastructure. The identity solutions in the market today fall short on their promise to deliver simplicity of integration and flexible deployment options, especially for mid-market and large enterprises,” added Mike Maples, Jr. Founding Partner at Floodgate. “Zitadel’s vision and continued execution are reflected in a steady growth in their customer base, strengthening their ability to become the leading identity infrastructure provider.”

As subscription-based businesses continue to outgrow traditional business models, numerous companies are seeking scalable solutions to authenticate, authorize, and manage users efficiently. Companies are also challenged more than ever to ensure data is protected with the highest level of security. By offering cloud-native identity infrastructure with multi-tenancy capabilities, Zitadel is the only identity infrastructure tailored for the enterprise to tackle authentication and permission management.

“Zitadel is more than just a tool; it is a comprehensive identity platform that caters to the diverse needs of developers, operators, and security professionals”, said Florian Forster, CEO of Zitadel. “Embarking on this next phase, we will invest in our platform, customers, and the open source community by improving APIs and SDKs for developers, enhancing observability and visualization tools for site reliability engineers, and investing in AI-driven threat detection and security incident management modules.”

Businesses today struggle with the complexities of single sign-on, multi-factor authentication, and granular permissions, especially in business-to-business (B2B) environments. Zitadel’s open source approach, developer-friendly APIs, and a robust multi-tenant architecture make it easy to integrate with both new and existing applications. This empowers customers to manage multiple organizations and security policies simultaneously.

Zitadel serves a globally distributed customer base of over 150 businesses with an identity platform that caters to a diverse range of industries, including manufacturing, finance, education, healthcare, and SaaS. Zitadel’s customers include large enterprises with advanced use cases and deployments, as well as small and medium-sized businesses (SMBs), that value the company’s developer-first approach, commitment to data ownership, comprehensive audit trails, and flexible deployment options. Zitadel gives businesses complete control over their sensitive data and ensures regulatory compliance.

The Series A investment will enable Zitadel to accelerate product development, expand its technical team, and strengthen its position as the leading solution in cloud-native identity security. Developers will be able to create fully customizable login experiences that seamlessly integrate with existing protocols like SAML2 and OpenID Connect.

Security operators will be empowered to derive actionable insights through data aggregation, enabling them to monitor compliance and security across user behaviors and application usage patterns. By streamlining complex processes, security operators can leverage advanced usage analytics and threat intelligence capabilities, allowing them to focus on strategic security initiatives.

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